北京外国语大学法学院国际经济法习题.doc

北京外国语大学法学院国际经济法习题

2007年9月

Chapter One: Introduction to IEL

1.Retell briefly the historical reasons and social motives that lead to the development of

international economic law.

2.Retell briefly the international economic interdependence between nations before WWII and the

international economic law during that period.

3.Based on the new development of international economic law since WWII, give a description of

how IEL would develop in the new century.

4.Try to give 10 concrete examples of international public law, international private law,

international economic law and international business practice. Conclude from the examples how these four behavioral laws/practices are similar to or different from IEL.

5.Make a good sense of the realistic importance of studying IEL and relate to your responsibilities

as an IEL student.

Chapter Two: International Trade in Goods

1.Hudson Mini-fridge Co. Ltd. Is one of the leading manufacturers of small refrigerators in Canada. The refrigerators are used primarily in hotels or motels as “minibars."Hudson of Churchill, Manitoba is the sole Canadian manufacturer of mini-refrigerator

Mini-fridges are sold to hotels, recreation vehicle users and individuals through retail outlets. However, the hotel market is , by far, the largest user accounting for over 60 per cent of all mini-fridges sold in Canada. Hudson's entire output consists of mini-type refrigerators and is sold entirely for hotel use.

The company was incorporated in 1982. The establishment of the company followed a feasibility study which indicated that the Canadian market had a potential of approximately 15,000 minibars per year in its 300,000 hotel/ motel rooms, 80,000 of which are found in 3-to 5- star hotels. At that time, although they were quite common in the European hotel industry, the minibars were relatively new products in Canada; the majority of minibars were being supplied by Electrolux of

West Germany and Elektrosuisse of Italy, with a few being supplied from of “Antarctic"of Slovenia.

Hudson was set up specifically to produce hotel mini-bars for the "MicroFRIG" franchise system” developed by MicroFRIG SpA of Italy Hudson purchases other certain parts from MicroFRIG with payment by Documentary Letter of Credit. Hudson purchases other components in Costa Rica with final assembly at its plant in Churchill.

Hudson's major competitor is "Antarctic, "an exporter of Slovenian mini-refrigerators. Hudson has been noting a severe decline in sales in recent years and has come to suspect the “Antarctic” has been selling below what it actually costs to produces these goods in Slovenia. The special import Measures Act states that the production of like goods refers to those goods that are identical to the dumped goods, or, in the absence of identical goods, to those goods whose uses and other characteristics closely resemble those of the dumped goods. Admittedly, there are some minor differences in appearance and construction of the outer shell between the dumped and the domestically produced mini-fridges. The differences may render the two non-identical, but in the view of Hudson, they are certainly alike since both share their essential features, uses and characteristics.

a.Antarctic does not have a sales office in Canada but an English language website that proudly

waves an animated Canadian flag. Payment is accepted in Canadian dollars. In addition, they have a toll-free number that rings in Slovenia and is answered by English-speakers during

normal Canadian business hours. If the Sleep Easy Hotel in Ottawa orders 100 mini-

refrigerators from Slovenia will a Canadian court exert jurisdiction over the case?

b.Hudson became quite concerned about their declining market share, They purchased several

units from Antarctic, took them apart and priced each component using Slovenian components, Mexican components and then with Chinese components. Further, Hudson had an investigator purchase a unit from Antarctic in Slovenia. What they have discovered is that the Antarctic mini-fridge is being sold in Canada at a price less than it sells for in Slovenia. What advice can you give to Hudson?

2.You have delivered a shipment of goods to a foreign country. The goods have been damaged and are no longer useable. The foreign buyer refuses to pay, claiming that the problem was inadequate packing on your part. You are sure that the problem was inadequate handling and storage procedures at the shipment's destination. What are your options for securing redress? What terms should have been included in the original contract to protect your interests in this case?

3.You are a domestic producer of household consumer items. Over the past year, Your business has faltered because of the appearance of similar items produced in a developing country and imported into Canada at extremely low prices. You suspect unfair competition. What procedure do you follow to protect your business?

4.What are the four different ways for a firm to enter a foreign market? Provide a brief description of each of these foreign market entry strategies.

5.What is " force majeure?”

6.The Grand Duchy of Monrovia is one of Central Europe's smallest and most impoverished nations. At one time, it even considered declaring war on the United States in order to intentionally lose and then become the beneficiary of America's largess in the form of the generous economic aid that the US usually showers upon the nations that it has conquered, The Grand Duchy's sole export is an excellent red St. Laurent. Everything else must be imported. In order to monitor imports, it requires that all imports must be accompanied by a document known as a (n).This document helps Monrovia's customs service assess duties, clear the goods and gather trade statistics.

a.consular invoice.

b.bill of lading.

c.export license.

https://www.360docs.net/doc/7a10854323.html,mercial invoic

e.

7.A Canadian business involved in contracts outside of Canada's borders

a.May be subject to Canadian laws

b.May be subject to foreign laws

c.may be subject to treaties and conventions

d.All of the above

e.None of the above

8.A bill of lading is a

a.receipt.

b.contract.

c.document of title.

d.all of the abov

e.

9.If a business engages in the international distribution of a product

a.It is protected by Canadian law from being subject to the law and regulations of other countries

b.It is exposed to the laws and regulations of other countries

c.It is prohibited from importing foreign products into Canada

d.It is exempt from tax on income earned on foreign sales

10.Goods imported into Canada are not subject to Canadian law.

11 .There is no risk associated with doing international business.

12.The law of contracts has no part in international trade.

13.The t rade term "FOB” stands for "Fresh off the Boat”

14.As of 2004,63 countries were party to the CISG

15.Contracts for the sale of goods must be in writing if they are to be governed by the international sale of Goods Act (Vienna Convention)

16.The Vienna sales convention does not apply to govern the validity of an international sale of

goods contract.

17.The convention on contracts for the International Sale of Goods provides a practical alternative to the domestic laws of the contracting parties who cannot agree on the applicable law.

18.Michelle Gaudette, an export consultant, has recently been hired by William Edwards to assist him in making his company “export ready”, Among her duties, was the creation of a number of pro forma documents that William would use when the first international order comes in . William is extremely confident that this could happen "any time soon". He has recently returned from a number of trade shows in Liechtenstein and South Asia where his product has been well received, He is confident that orders will soon be rolling in . Describe for William the name of the document, which is a bill for goods from the seller to the buyer that contains the description of the goods, the address of the buyer and seller, and delivery and payment terms, This document is known as a

19.Goods imported into Canada are subject to the Act and the Act.

20.Certain goods from certain countries enter Canada free.

21.The Act deals with product dumping.

22.The Act controls the amount of cheaply produced and other goods into Canada.

23.The least risky method of doing business internationally is or

24.A Bill is an essential part of an international sale.

25 - Yun-jung Hu has lived in Vancouver for most of his adult life. He is a budding restaurateur and hoped to purchase an existing Chinese food restaurant specializing in Szechuan and Hunan style-cooking. One day, an urgent family matter required him to return to his village in rural China. In his village, there is only one phone (at the post office)that works, along with the electricity and the water, only sporadically, There is no fax or email . Yun-jung was not scheduled to return to Canada for at least six weeks, While he was gone, his sister received an urgent phone call from Bob, the real estate agent assisting Yun-jung in locating a suitable restaurant. Apparently, Bob had found a suitable restaurant at a "steal” of a price. However, Yun-jung had to act fast. Bob was disappointed to leam that his client was in China and could not be reached. Advise Yun-jung's sister.

26.Melissa owns a very successful woman's fashion shop in the York Ville district of Toronto.

She carries the latest fashions from Europe and New York and she regularly attends

international fashion shows to view and purchase the spring and fall haute couture collections for her wealthy clients. Although Melissa has a very successful business, she always has her eye on the bottom line. When she travels to Paris, Melissa always flies economy, takes the Metro and stays at budget hotels such as the Ibis (a modest two-star hotel)and eats at bistros and sidewalk cafes. Last year, she was unable to attend the spring shows in Paris at Lagerfeld and Channel and in her place sent her sister. Magda, who helped out occasionally in the store.

Melissa gave Magda instructions to spend no more that C 100,000 on the fall collection.

Magda had never been to Paris before and went wild. First, she flew first class to Paris. She

took a chauffer driven Mercedes 600 limousine from Orly and stayed the Georges V, a

luxurious 5-star hotel in downtown Paris not far from the Champs Elysees at cost of over C 550 per night. She lunched at three-Star Michelin restaurants and dined at four and five-star restaurants before dancing the night away at Paris's top nightclubs where she and her new

friends consumed copious quantities of Dom Perignon. Magda ordered more than C 1000 000 of clothing and when she returned, gave Melissa the bill for her extravagant trip. Advise

Melissa.

27.A principal could be liable for the acts of an agent who exceeded his or her actual authority on

the basis of:

a.apparent authority.

b.Express authority.

c.Necessity.

d.Implied authority.

28.Which of the following is not an implied obligation or duty of an agent to his/her principal?

a.to demonstrate good faith.

b.To act with competence and diligence.

c.To pay reasonable expenses of the agency agreement.

d.To protect confidentiality.

29.An agency by agreement is one in which the agent derives her power from

a.actions of the principal that lead third parties to reasonably conclude an agency relationship

exists

b.adoption by the principal of the contract entered on his behalf by the agent although she did not

have authority at the time when she acted as agent.

c. A contract between the principal and the agent

d.Agreement by the third party to be bound by commitments made to the agent

e.Circumstances that necessitated acting without authority from the principal.

30.When an agent acts for a principal to enter a contract with a third party, the parties to the

contract thus formed are

a.the principal and the agent

b.the principal and the third party

c.the agent and the third party

d.the principal, the agent, and the third party

e.None of above

31.If an agent enters into a contract with a third party, who is ordinarily liable?

a.the agent

b.the principal

c.the third party

d.any witnesses to the contract.

32.If the principal fails to give notice to third parties when an agency relation ship is terminate.

a.the principal will be bound by any contracts entered with third parties by the (former )agent,

that were formed through the agent's exercise of apparent authority

b.the agent will not be able to bind the principal in any contractual dealings with third parties

c.the principal will not be able to sue the (former )agent for continuing to act as an agent

d.The principal cannot be bound to any contracts entered with third parties because the agency

no longer exists.

33.Which of the following is a necessary part of the agency relationship?

a.Principal

b.Buyer

c.Seller

d.Franchisor

34.Mr. Smith recently fired his sales agent, Mr. Tang. Mr. Smith told him that he no longer has

any authority to make any deals for Mr. Smith, By doing so , Mr., Smith has adequately

protected himself from Mr. Tang making any more deals on his behalf.

35 . An agent must be a living person.

36- The disadvantage of an agency agreement is that it is not legally binding.

37.An agency agreement must be set out on paper.

38.The principal is bound by the actions of the agent.

39.If an agent exceeds his/her authority, the principal has little or no recourse.

40.The agency relationship is generally created by contract, either or in

41 ? The advantage of a written agency agreement is that

42. A is a common from of contract in which the principal grants power to the agent to enter into

legal relationships on his/her behalf.

43.If duties are carried out properly, then the will be generally bound by the acts of

The _______

44? The agent must follow the instructions of the

45- Without clear instructions the agent must

46.If an agent's intention was to defraud a third party, the third party would have an against the

agent in question.

47.If an agent innocently makes a false statement, the third party could choose to the contract, on

the basis of an innocent misrepresentation.

48.Seller, whose place of business is in Sate A, and Buyer, whose place of business is in State B ,

enters into a contract that stipulates that the UN Convention on Contracts for the International Sale of Goods applies. Neither State A nor State B is a contracting state. Does the Convention apply?

49- Retailer in State A decides to go into the catalog sales business in State B. Both countries are parties to CISG. Retailer purchases a mailing list from Ace Credit Card Company. The list has the names and addresses of 500,000 persons owning Ace credit cards in State B, and Retailer uses this to prepare mailing labels. John Q. Public receives a catalog addressed to him

personally from Retailer. The catalog describes various types of widgets and gives prices for each one. Has the Retailer made an offer to sell the widgets? If John accepts, will there be a binding contract?

5(). On January 1, Seller sent a letter to Buyer offering to sell to Buyer 5,000 widgets for $ 25 apiece. The letter also stated:" This offer is binding and irrevocable until February I”.On January 5, prior to Buyer's receipt of the letter, Seller called Buyer on the telephone and left the following message on the answering machine at Buyer's place of business:" Ignore my letter of January 1. I have decided to withdraw the offer contained in it .''On January 7, after listening to her answering machine and reading the letter that arrived that same day , Buyer sent Seller the Following telegram："I accept your offer of January 1.” Is there a contract under CISG?

51.On December 1, Seller sent to Buyer an offer to sell 5,000 widgets to Buyer for $ 25 apiece,

The offer stated." The price is too high , I don't accept your offer.” Then, on December 15, Buyer changed his mind and sent a telegram stating： "I accept your December 1 offer after all.” Seller replied： "Your acceptance is good, since you promised to keep your offer open until December 31/Is there a contract under the CISG?

52.Buyer received a letter in her mail on January 1 offering to sell Buyer 5,000 widgets for $ 20

apiece. Seller's letter closed with the following statement： "I know that this offer is so

attractive that I will assume that you accept it unless I hear otherwise by January 31.v Buyer did not reply . Seller shipped the widgets on February 1. What are Buyer's responsibilities under CISG?

53.Seller and Buyer entered into a written contract for the manufacture by Seller of 10,000

widgets of a design specified by Buyer and set out in the contract. The contract also provided:"

This contract may only be modified in a writing signed by both parties." Before Seller had begun work on the widgets, Buyer and Seller agreed by telephone to a change in the

specifications for 2,500 of the widgets. Seller then produced and delivered the 2,500 widgets as specified. Buyer refused to accept them because they did not conform to the specifications in the original contract. Assuming C1SG applies, who breached?

54.Buyer and Seller entered into a contract governed by CISG for Seller to deliver a sophisticated

computer to Buyer by January 1. Seller was late in delivering the machine, so Buyer wired Seller on Januare2： "Anxious to take delivery of the computer. Hope that it arrives by

February I." Seller delivers the computer on February 5, but Buyer refuses to accept it and

declares that the contract is avoided because Seller failed to hand over the computer before the February 1 date specified in the January 2 telegram . both Buyer and Seller agree that there has not been a fundamental breach . Is buyer able to avoid the contract under these circumstances?

55.Dealer in the United States owned a cargo of 10,000 barrels of oil that had been shipped from

Mexico on January 1 for arrival in the United States on February 1. On January 15, Dealer informed Buyer that the oil was en route and they concluded a contract. On arrival , inspection showed that the oil had been contaminated by seawater at some indeterminate time during the voyage. Assuming CISG applies, who bears the risk?

56.Seller agreed to deliver three software programs to Buyer that are specially designed for

Buyer's business. The first was to be delivered in January, the second in February , the third in March. The program delivered in January worked fine, but the one delivered in February was defective. It not only failed to function properly , it also made the other two programs

effectively worthless- Seller was unable to correct the defect , and no suitable replacement could be found from another supplier. What CISG remedies are available to Buyer?

57.Seller contracted to deliver 1,000 barrels of oil to Buyer for $ 14,000. When the oil arrived, 975

barrels complied fully with the contract description. Twenty-five were contaminated and

unacceptable. Oil in comparable barrels was available in the local market for a price of $ 18 a barrel in 25-barrel lots. Seller offered not to charge Buyer for the barrels. Is there a contract under CISG? If so , what payment is due Seller?

Chapter Three: International Trade in Services

1.State A, an Eastern European country, is in the process of transforming its command economy

to a market economy. It is also a WTO member state that has granted market access to its

financial services sector to foreign banks. Unfortunately. It recently began to have difficulty with its balance-of payments obligations. After notifying the GATS Council on Trade in

services and the International Monetary Fund, it issued a decree restricting the right of foreign banks to transfer funds abroad. It put no similar limitations, however, on its own banks or on the banks of other Eastern European countries making the transition to market economies. Big Bank , a bank with its place of establishment in State B and a branch in State A, objected to the State A decree and sought the help of State B to get State A to modify or rescind its decree.

State A has contacted State B for consultations and both parties have notified the WTO Dispute Settlement Body of their intent to engage in consultations. How should this dispute be resolved?

Explain.

2.State C is a WTO member state and a party to NAFIA. It has made no specific agreements

under either GATS or NAFIA as to its road transport sector. Now, tow fright companies, one from State D (a WTO member state) and one from State E (a party to both the WTO and

NAFTA),wish to provide overland freight transportation services in State C using trucks

operating out of terminals in their states of establishment. May they do so ? if so , to what

extent? Explain.

3.State A has not ratified either the ILO Convention Concerning Freedom of Association of the

ILO Convention Concerning the Application of the Principles of the Right to Organize and

Bargain Collectively. Several workers within State A have lodge complaints with the ILO about their right to associate and bargain collectively. Can the ILO's Fact-Finding and Conciliation Commission consider their complaints?

4.Armstrong worked for a United Nations specialized agency in Geneva for 7 years. As part of

his job , he tracked the civil rights activities of the agency's member states. One state did not appreciate his listing of certain civil rights abuses that he alleged that country was perpetrating against its nationals. The country refused to pay its dues to the agency unless he was fired. The Secretary-General of the agency then fired him. Armstrong appealed this decision to the ILO's Administrative Tribunal , which was jurisdiction over these kinds of disputes. Armstrong asked the Tribunal to order the agency to rehire him; or, if it could not, then to order the agency to pay him compensation for the loss of his job. How should the Tribunal

rule? Discuss.

5.Barton works as a freelance reporter covering stories in State F, a member state of the European

union(EU). Her revealing stories, which she sells to a variety of progressive independent

newspapers throughout the EU, have caused a great deal of embarrassment to a certain Minister in the State F government; and the Minister has asked the State F Parliament to pass a law

forbidding foreign news reporters from working in State F Attorney General for an opinion on the legality of the Minister's request in light of State F's membership in the EU. What advice should the Attorney General give Parliament? Discuss.

6.Caruso, a national of State G, is licensed to be a lawyer in that state. Caruso , however, wants to

work as a courtroom advocate in State H. May Caruso do so , despite the fact that State H has a law that says only citizens my be courtroom advocates in State H? (Both State GF and State H are members of the European Union.)Discuss.

7.Dickens is a dual national of the United States and Ireland. The United States has a prohibition

on travel and employment of U.S. .nationals in Cuba. If Dickens goes to work in Cuba using his Irish passport to enter and leave Cuba, may the United States take any action against Dickens?

Discuss.

8.The faculty of Public University (PU), located in State I , has invited Karl Engels, a

“revolutionary Marxist” from State J, and Bishop Biggott, an advocate of apartheid from State K, to Participate in a symposium at PU? Both individuals have agreed to attend , but both have been denied visas to enter State I by that state's Foreign Ministiy The Ministry acted according to State I law, which grants the Ministry authority to deny visas for reasons of public policy, public safety, or public health, The PU faculty petitioned the Ministry for a waiver, but the Foreign Minister refused to grant it. The faculty members have now brought a suit claiming that

(1) their rights under State I's Constitution (that guarantees both freedom of speech and freedom

of assembly)to hear the viewpoints of Mr. Engels and Bishop Biggott have been denied and (2) that the government has no basis on which to deny either applicant admission to State I. Will the faculty succeed on either of these grounds? Discuss.

9.Americana, Inc. a large multinational corporation with its headquarters in the United States, has

a subsidiary in Tokyo. It refuses to appoint any Japanese nationals to the senior executive posts

of the subsidiary, claiming that it is specifically allowed to do so by the 1953 Japanese -United States Friendship , Commerce, and Navigation Treaty. Is this true? Explain.

10.Edison , an employee of big corporation , works for Big at its subsidiary in Slate Y. Edison is

an American citizen and Big is an American corporation ? Big fires Edison because he is a member of a racial group that is generally despised in State Y. Edison now brings a suit in the United States claiming that his American civil rights have been violated. Have they? Explain.

Chapter Four: Intellectual Property Rights and Transfer of Technology

1.What is Intellectual Property?

2.What is passing off?

https://www.360docs.net/doc/7a10854323.html, some thing that would be Intellectual Property?

4.What are the requirements for a Patent?

5.what is a trademark?

6.what is necessary for registration of a trademark in Canada?

7.What are “normal rights?”

8.You have just come up with a great idea for a Board Game. Just when you thought you have it

all worked out, you find out that someone else has marketed a similar board game in the UK.

You don't know the other guy. Do you have a Copyright infringement claim against him? Now what if you had actually marketed the game and registered the Copyright but sold it to kids and had bombed and dropped it. A friend of yours 10 years later picks it up markets it to Yuppies and makes a mint. What do you do now ?

9.What is the registration periods for the types of intellectual property that are statutorily

recognized in Canada?

10.What is a franchise?

IL What is a licensing agreement?

12.If Francesca invents a new process for recording music, she will likely apply for a :

a.patent.

b.Trademark.

c.Copyright.

d.Industrial design.

13.The rights of an author or artist with respect to his or her creation is governed by the law of:

a.patents.

b.Copyrights.

c.Trademarks.

d.Industrial designs

14.A street vendor on Bloor Street is selling fake "Rollex”watches. Under which area of

intellectual property would the Rolex Company likely seek a remedy?

a.Copyright.

b.Trademarks.

c.Patent.

d.Industrial design.

15.Which is false? Intellectual property right may be protected by :

a.maintaining secrecy.

b.Registration.

https://www.360docs.net/doc/7a10854323.html,e of a confidentiality clause.

d.Assignment.

16.Bunny's has designed a uniquely shaped walker for senior citizens, which can be collapsed and,

with the aid of two levers, used as a chair. Bunny's design is in commercial production under the name of Supportive Stroller. Which types of intellectual property would most likely apply to Bunny's creation?

a.Patent; copyright; trademark.

b.Copyright; trademark, industrial design.

c.Trademark; industrial design; trade secret.

d.Patent; trademark; industrial design.

17.Which is not a remedy for infringement of intellectual property rights?

a.An accounting for profits.

b.An injunction.

c.Specific performance.

d.Damages-

18.Passing off is

a.Incitement to break the contractual obligations of another

b.Presenting another's goods and services as one's own

c.The public utterance of a false statement of fact or opinion that harms another's reputation

d.The utterance of a false statement about another's goods or services that is harmful to the

reputation of those goods or services.

19.A Trademark is

a.The ornamentation or shape of a functional object, such as a chair.

b.The right to prevent others from copying or modifying certain works

c.A monopoly to make, use or sell an invention

d.A mark used to distinguish the source of goods or services

20.Under the Patent Act, the person entitled to receive a patent on a new invention is

a.The one who invented it firs.

b.The one who applied for a patent first

c.The one who commercialized it firs

d.The one who first thought of it

21.The protection afford by a Canadian patent lasts for a maximum of

a.1 Oyears

b.20years

c.The life of the patent holder

d.The life of the inventor plus 50 years.

https://www.360docs.net/doc/7a10854323.html,e of a trademarks that is the property of a competitor is

a.The tort of passing off

b.The tort of deceit

c.The tort of fraud

d.The tort of negligence

23.A patent is a legal monopoly to make, use, or sell an invention.

24.Patents are international in nature.

25.Passing off is a tort.

26.Counterfeiting is the same as passing off.

27.moral rights can be assigned.

28.Franchise agreements are very negotiable.

29.Intellectual property is intangible property that is the result of the creative, intellectual process.

30.The term of registration for a Trademark is 25 years.

31.Trademarks are unenforceable.

32.A Trade name and Trademark is the same thing.

33.An action for is the usual method of enforcing a Trademark.

34.Like Patents. Exist only in the country where they were granted.

35.Copyright protection extends for the life of the author plus

36.Moral rights include,and u

37.is the right to prevent others from copying or modifying certain works.

38.Intellectual property rights fall under the exclusive jurisdiction of the government.

39.Trade secrets may include,,

40.An must be new, useful, and unobvious.

4L Failure to work a patent may result in t

42. Alvin, Bob, Calvin, Don, and Edgar are friends who enroll in a university course to study

international business law. The textbook required for the course costs $ 50, which the

five friends agree is expensive. They agree to chip in $ 10 each and buy one copy from

a bookstore. They then take the copy to the local Discount Copy Store and make five

copies of the complete book for $ 15 a copy. Then they return the book to the

bookstore and get a refund of their original purchase price. Have the five friends done

anything wrong? If so , what ? Explain.

43 - Elvira is an abstract painter of incredible talent, but of little notoriety. One of her paintings,

entitled "Blue Lady 13,"is a price of intense power and sensuality. In 1990, she sold it to Mega Company for display in the main public entrance of the business's new head quarters building .Several art critics attending the opening of the building mistook the painting for a long lost work of Pablo Picasso. The critics wrote about the painting in their newspaper columns as though they had made a great discovery. When people began flooding into the Mega Building to see "Blue Lady 13,"the directors of Mega were delighted. They even went so far as to put up a sign that sai d:” This painting, entitled 'La Dama Azul, 'was probably painted by Pablo Picasso during his blue period, ca. 1913"is there anything that Elvia can do ? Explain.

44.The First-to-Market Computer Software Company owns the copyright to a highly

successful spreadsheet program—Blossom 3-2-1 which has dominated the worldwide

market for several years. Recently, Clone Software Co. devised a look alike program

that dos everything that the Blossom 3-2-1 program does, except that the Clone sells

for only one -tenth the price of the original, First-to Market has sued Clone for

copyright infringement. Clone defends itself by saying that the coding of its program is entirely different from that of Blossom 3-2-1 and that the only similarity between the

programs is that the images that appear on the computer screen and the key sequences

used to operate the program are identical. Has Clone infringed First-to-market's

copyright? Explain.

45.The Whopper Co. is a manufacture of gumballs. The technology and know-how to do

this are well-know in the scientific and engineering community in Whopper's home

country, where gumballs have been popular with consumers for decades. Whopper

decided recently to expand into Country X and to introduce gumballs to a market that

has never seen them before. Before doing so , Whopper filed for a patent in Country X

? The local patent office examined the application as to form (it was fine), searched

the local records to determine if the technology was known locally (it was not ), and

then published notice of the application in the Patent Gazette for public comment .

There was no public comment, and the patent was issued. Now, Bubble Co., a local

Countiy X business, has begun manufacturing and selling gumballs in Country X that

are identical to those being manufactured and sold by Whopper, Whopper brings suit

for patent infringement. Bubble countersues to have Whopper's patent revoked. Who

will win? Explain.

46.Matilda, who owns the trademark "mr. wiggles” for use on a line of children's toys in

Country A, learns that Nina has applied to register the same mark for use on a line of

similar toys in Country B. Will Matilda be successful in opposing Nina's application?

47.Jacques Pierre manufactures and sells a line of perfume-Le Peux-in distinctively

shaped containers that are instantly recognizable. May Jacques Pierre register the

shape of the containers as a trademark? Explain. If not , how else might Jacques Pierre keep competitors from selling their perfumes in similar containers?

48.Barley Beer Co. owns the trademark "S uper Suds” for use on bottled and canned beer

in Country X. Barley has not used the mark in Country X for 6 years. Hops Beer Co.

would like to use the mark, and it brigs suit in the Country X courts to have Barley's

trademark revoked. Will Hops succeed ? Explain.

49. A Japanese firm, Omega Company, manufactures cassette tapes with the trademark

TXX. Omega licensed Alpha Company to distribute and sell the tapes in Australia and Sigma Company to do the same in South Africa. The license with Sigma expired after

3 years, and Omega refused to renew the license. Sigma then began buying cassettes

from Alpha in Australia in bulk quantities and importing them into South Africa.

These tapes had no individual wrappers or labels and sigma affixed both wrappers and labels with the TXX trademark on the cassettes, which it then sold throughout South

Africa. Omega, which owns the TXX trademark in South Africa, has brought suit to

enjoin Sigma from importing the cassettes into South Africa. Will Omega succeed?

Would it make any difference if Omega's license with Alpha forbade Alpha from

selling tapes for export to South Africa? Explain.

50."Preventing the importation of gray goods legitimately manufacture outside the

country is , in reality, injurious to consumers and contrary to basic principles of unfair competition laws” Comment.

51.The world's seven principal manufactures of widgets have entered into an agreement to

exchange with each other for a period of 7 years all of their patents, petty patents, and

know-how, and to enter into jointly funded research and development activities to

improve widgets. Is this agreement enforceable? Explain, Would it matter if all of the

pcirticipants were located in the European Union? Japan? The United States?

52.The Slinky Co. is a manufacturer of revealing bedroom apparel. Especially negligees

and pajamas, which it sell through franchised retail outlets that operate under its trade

name. The franchisees are prohibited from handling any other line of clothing . One

franchisee has challenged this particular provision in court, arguing that it is an invalid noncompetition clause. Will the franchisee be successful ? Explain.

53.The Huge Company owns several patents that are essential both to the manufacture of

xerographic copiers and to the manufacture of photographic developing machines.

Huge Company's standard license agreement contains the following clauses:

a.The licensee may use the technology only for the manufacture and sale of xero-graphic

equipment.

b.The licensee may sell the products made with this technology only in Country X.

c.The licensee may not ell the products made with this technology to anyone intending to

resell the goods in any other country.

d.The licensee must grant to the licensor all technological improvements it makes in

connection with the licensed technology. The licensee is expressly forbidden from

applying for patents in its own name on any improvements to the licensed technology. e.The licensee may not undertake any research and development activities relating to the

development of competing products or technologies.

f.The licensee may not undertake any research and development activities relating to the

licensor to the licensee.

g.The licensee may not use any know-how or other knowledge learned from the licensor for

a period of 3 years following the expiration of the license.

h.The licensee may not use any of the licensor's patented technology for a period of 3 years

following the expiration of the last patent.

Comment on the validity of these clauses.

Chapter Five: International Payments and Financing

1.What is a promissory note?

2.What does "sight" mean?

3.How many days grace is one entitled to when presenting a bill of exchange?

4.Who is the "payee?"

5.What is a maker?

6.Can 16 year old Jacques be a maker of a promissory note?

7.What are three classes of defenses to a claim for payment on a negotiable instrument?

8.What is the difference between a real defense and a defect of title defense?

9.Old Mrs. Pyl was 79 years old and living in a retirement home. She received a notice in the mail that she had won a prize. She called the number stated in the letter. A nice young man named Christopher made an appointment to see her to deliver the prize to her personally the very next day, While he was there, he demonstrated the wonderful new vacuums that he happened to sell. Boy, could that thing suck! Mrs. Pyl was very impressed. However, the young man told Mrs. Pyl that in order to receive her prize (which were a few tea towels and an ashtray), she had to buy the vacuum for $ 1,800. She willingly wrote out a cheque. When her daughter came

to visit her later that afternoon, Mrs. Pyl proudly displayed her new acquisitions.

Her daughter became very upset. What can be done now ?

10.Describe the document, sometimes referred to as a bill of exchange that is the instrument normally used in international commerce for payment.

a.Bill of lading is a document in which one party, the Drawer directs another party, the Drawee

to make a payment.

b.Bill of exchange which is a document in which on e party, the Drawer directs another party, the

Drawee to make a payment.

c.Stamp of credit worthiness is a document in which one party, the Drawer directs another party,

the Drawee to make a payment.

d.Open note issued by the Importer's Bank.

11.Define a 'bill of exchange'?

a.A bill of exchange is an unconditional order in writhing. Signed by the exporter and drawn on the importer demanding payment of the indicated sum of money on a specified date.

b.A bill of exchange is a conditional order in writing, signed by the exporter and drawn on the importer demanding payment of the indicated sum of money on a specified date.

c.A bill of exchange is an unconditional sales contract in writing, signed by the exporter and addresses to the importer demanding payment against delivery of the goods.

12.Jane Harris signs a cheque on her account at the Bank of nova Scotia to Michael King. Which

of the following is true?

a.The bank of Nova Scotia is the drawer.

b.Jane Harris is the drawer.

c.The Bank of Nova Scotia is the Drawee.

d.both A and B

e.both B and C

13.Which of the following is an example of a negotiable instrument?

a.Promissory note

b.cheque

c.a mortgage

d.a and b

e.all of the above

14.Lou Gaudette writes a cheque to Judy Atkinson for services rendered. What is Lou called in

relation to the cheque?

a.Payee

b.endorser

c.holder in due course

d.drawer

e.payor

15.Gerard Depardieu, a new exporter, is the developer of one of the hottest new home-based

personal finance software. He has developed a special package for use in France and is thrilled when she received an initial order of 150,000 units from Carrefour, the second largest retailer in the World (after Wal-Mart, of course). Known for their extreme attention to detail and the ability to cater to local tastes. Carrefour has established itself as Europe's largest retailer.

Carrefour now has over 9,000 stores in Europe, South America and Asia. However, M.

Depardieu is still nervous. Carrefour may be large, but she has never heard of them. He has of course heard that there is a Canadian agency that assists exporters. Which of the following best describes the role of this agency?

a.The mission of the Export Import Bank is to provide financing aid that will facilitate exports,

imports, and the exchange of commodities between Canada and other countries.

b.Export Development Corporation, is a Crown corporation whose purpose is to facilitate and develop Canada's export trade

c.Export promotion Agency is the successor to the Export Credits insurance Corporation

d.Canadian International Trade Tribunal assists Canadian exporters through the provision of timely advice and export credit insurance

16.Few business transactions involve the exchange of good and services for money.

17.Negotiable instrument is not a viable method of payment in Canada.

18.A cheque is a special type of bill of exchange.

19.The drawee is obligated to accept a bill.

20.A minor cannot incur liability on a negotiable instrument.

21.The most effective defenses are “real defenses”

22.Absence of consideration may be a personal defense.

23.A is a defense that is only effective against an immediate party.

24.A major advantage of a bill of exchange is u

25.A is a document that meets the requirements for circulation without reference to other sources.

26.The person who prepares a bill of exchange is the

27.i s the process whereby the person who writes a cheque orders the bank not to pay the holder who presents it.

28.Under the Act, special instruments called consumer bills must be so marked as to distinguish

them from other negotiable instruments.

29.An advantage of a bill of exchange is its

30.A person in possession of a negotiable instrument is sometimes called a (the)

31.A (n) is a bill of exchange that is payable on demand.

32.X and Y are foreign exchange traders in Germany . X agreed to sell 100 million Mexican pesos to Y for delivery within 1 week at an agreed price in German marks. X was 3 days late in making delivery. During those 3 days, the Mexican government acted to devalue the Mexican peso by 20 percent. Y now sues in a German court to have the contract set aside. Will Y be successful ? Explain.

33.X in State A and Y in State B plan to enter into a contract. What can they do to avoid the impact of a fluctuation in the value of their money of account?

34.Q State forbids its citizens from taking more than 1,000 units of its currency out of the country in any 1 -month period. To avoid this limitation, Ms. Ecks , who lives abroad in Xanadu, in State X, writes a check drawn on her account with QueBank, a bank located in the capital city of Q State., Ms, Ecks then uses her check to buy yen , at a sizable premium ,from a friend, Mr. Zed , who is a travel agent in Tokyo , Mr. Zed regularly accompanies tour groups to Q State and when he is there , he cashes Ms. Ecks's check at QueBank . Somehow the government of Q State learned of this transaction, and it ordered QueBank to freeze Ms. Ecks's account while she is abroad. Mr. Zed, unable to cash any advanced her. Will he succeed ?Explain.

35.MultiBank is a large London , England, bank with a branch office in Boston , Massachusetts. The American government believes that a prominent American underworld figure, Mr., has been depositing stolen money in MultiBank's Boston Branch as well as with the bank's home office in London. The government's prosecutor has asked an American court to issue a subpoena ordering the Manager of the Boston branch to turn over all records relating to Mr. Z from both the Boston branch and the London home office. Should the court issue the subpoena? Explain.

36.You are an arbitrageur in London. French francs are presently selling in London for US $ 0.20. You anticipate that they will increase in value and be selling for US$0.23 in 30 days. You purchase $ 1 million worth of francs on the spot market. Is there anything that you can do to hedge your bet? That is , is there some way to ensure that you won't lose all of your money in case the value of the franc plummets?

37.Q Bank, located in State A, has a branch in Z state B.X has State A currency on deposit in that branch ? Z directs the branch to transfer the funds to a branch of P Bank that is located in State B. P Bank itself is , like Q Bank , located in country A. The customary method for making such a transfer is for Q Bank's branch to request its parent to make a transfer through State A's central bank , debiting its own account with its parent and crediting P Bank's account at the central bank . In turn , P bank -will credit its branch's account with the transfer. State A, however, has imposed an embargo on all transfers relating to monies belonging to X, and neither Q Bank nor P Bank will make the transfer files suit in State B and seeks an order for the two branches to make the transfer locally without going through their parent banks or State A's central bank. Will X be successful?

38- Identify the following instruments:

a.A written promise by a bank to repay money received from a depositor.

b.A written promise to pay another a certain sum of money.

c.An instrument drawn by one person ordering another to pay a third at a definite future time.

d.An instrument drawn by one person ordering another to pay a third at presentment or at a

stated time after presentment.

e.An instrument drawn by person A ordering person B to pay person A.

f.An instrument drawn by one person ordering a bank to pay a third person on demand.

g.A written promise to pay another a certain sum of money that is secured by personal property.

h.A written promise to pay another a certain sum of money that is secured by real property.

i. A written promise to pay another a certain sum of money that is due in installments.

j.An instrument that serves as a carrier's receipt for goods, evidence of a contract of carriage, and as a document of title.

39.The following instrument was written on a luncheonette napkin： "I, the undersigned, do

acknowledge that I owe Vladimir Lenin ten thousand rubles, with interest, payable at Moscow out of the proceeds from the sale next month of my dacha in St. Petersburg. Payment is due on or before 6 months from this date. Signed at Berlin.1 Otto von Bismarck. Is this instrument negotiable or nonnegotiable?”

40.Muhammad Mussadegh purchased a store in Abadan from Reza Khan for 100,000 pounds

sterling . To pay for the store, Mussadegh signed a promissory note that contained the following two clauses : (a)“On or before January 1, 1992, I promise to pay Reza Khan or bearer 100,000 pounds sterling in cash or deliver title to my house in Tehran , at the holder's option”； and (b) “The maker of this promissory note hereby reserves the right to extend the time of payment for

6 months; and the holder reserves the right to extend the time of payment indefinitely./9 What

are the effects of these clauses on the negotiability of the note?

41.Ben Arnold has been an employee of Tom Jefferson for several years. During that time,

Jefferson has relied on Arnold to prepare payroll checks, checks to pay suppliers, etc. Unknown to Jefferson , Arnold is a compulsive gambler who owes large sums of money to various

underworld figures. Arnold, who has been threatened with death if he fails to pay on his debts, prepares a check payable to a nonexistent supplier. Jefferson innocently signs the check . Arnold then endorses the check with "Pay to Ben Arnold" and the supplier's name. Later, Arnold takes the check to his bank , endorses it in blank , deposits it in his personal checking account, and then , later still , withdraws the money and flees the country. Meanwhile, Arnold's bank sends the check through the collection process and Jefferson's bank pays the check. When Jefferson discovers thcit Arnold has abandoned his job and defrauded him of a large sum of money, he demands that Arnold's bank credit his account at his bank . Must Arnold's bank do so? Under the BEA or UCC? Under the ULB?

42..Ms. V, a wealthy art collector in Country W, is interested in buying a are painting form Mr. Y

in Country Z, Both parties agree that the price is to be determined by an independent appraiser, V informs Y that she will send her agent, X, with a check to collect the painting. V draws a check payable to Y, but leaves the amount blank, she gives the check to X and instructs him to deliver it to Y. Without authority, X fills in the amount for 1 million US dollars and presents it to Y who has , in the meantime , received the appraisal, The appraised price is $ 750,000. X tells Y that Ms. V had made the check out for $ 1 million to insure that it would exceed the appraisal price, and that V has instructed X to return with the painting and the difference in cash. Y gives X the painting and $ 250,000 X delivers the painting , but then disappears with the $ 250,000in cash. When V discovers what has happened, she slips payment on her check and offers to pay ￥ $ 750,000 for the painting. Y insists that V must pay the check's full face value of $ 1 million .

Is Y correct?

43..Doug Drawer makes out a check for $ 9 to Phil Payee. Phil cleverly alters the number 9 to a 90

and the written nine to a ninety, then cashes the check at a local convenience store. Must Doug (or Doug's bank)pay $ 90 to the store? Under the BEA or UCC? Under the ULB?

44..John Johnson, who works for a well-known parcel delivery service, delivered a large package to Pete Peterson , and had Pete sign what Pete believed was an acknowledgment of delivery. The

package contained component stereo parts that Pete had ordered from a foreign supplier, and Pete was delighted to receive them . Pete did not give the matter a second thought until several months later when Donna Doe demanded payment of $ 5,000. Pete discovered that he had signed a 3-month negotiable promissory note rather than the acknowledgment of a delivery, and that Donna had innocently purchased the note from John. Must Pete pay the note? Under the BEA or UCC? Under the ULB?

45.Cee Company in Canada agreed to sell 10,000 gallons of maple syrup to Dee Company in

Denmark. Dee Company arranged for a letter of credit with its bank in Copenhagen. The credit required payment on the presentation of a bill of lading and an inspection certificate issued by a quality control on the presentation of a bill of lading and an inspection certificate issued by a quality control company, Vigilance, Inc, of Toronto. Cee Company produced both the bill and the inspection certificate, The Copenhagen bank refused to pay because the inspection

certificate stated that "based on a sample taken from 5 gallons, the maple syrup is of the kind ordered. "The bank argued that the certificate, on its face, did not certify as to the regularity of the entire order. Was the bank correct in refusing payment?

46.Rousseau et Fils has signed a contract to buy 10,000 “new coffee percolators in the

manufacturers original packaging, with standard manufacturer's warranty/' from Schwartz

GmBH, Schwartz agrees to ship the percolators CIF, and Rousseau agrees to make payment by means of an irrevocable letter of credit. Rousseau contacts Thermidor Bank, which issues a letter of credit promising to honor a promissory note payable to Schwartz when it is

accompanied by an invoice and a clean , on board bill of lading for "10,000 new coffee

percolators in the manufacturer's original packaging , with standard manufacturer's

warranty."Rousseau earns from Weiss, a competitor of Schwartz, that even though Schwartz had obtained actual bills identifying the goods as "10,000 new coffee percolators in the

manufacturer's original packaging , with standard manufacturer's warranty, "the percolators were actually used and inoperable. Is there anything that Rousseau can do ?

47.In question 9, would it make any difference if Rousseau had positive proof that a fraud had

been perpetrated?

48.In question 9, would it make any difference if Schwartz's bank had confirmed the letter of credit

and paid the promissory note before Rousseau learned of the supposedly defective shipment?

Chapter Six: International Investment

1..A tax haven is a country with:

a.An extremely high tax rate

b.An exceptionally low to Zero tax rate

c.A moderate tax rate

d.No tax laws

2.If a business engages in the international distribution of a product

a.It is protected by Chinese law from being subject to the law and regulations of other countries

b.It is exposed to the laws and regulations of other countries

c.It is prohibited from importing foreign products into China

d.It is required to import foreign products into Canada

e.It is exempt from tax on income earned on foreign sales

3.Historically, most FDI has been directed at the nations of the world as firms based in advanced countries invested in

a.underdeveloped, underdeveloped countries

b.developed, underdeveloped countries

c.developed, each other's markets

d.underdeveloped, each other's markets

4.Which of the following is not true about why firms prefer to acquire existing assets rather than undertake green-field investments?

a.Foreign firms are acquired because those firms have valuable strategic assets.

b.Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills.

c.Firms make acquisitions because they believe it will make more profits for the home firm and home country.

d.Mergers and acquisitions are quicker to execute than green-field investments.

6.Which of the following involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold?

a.Franchising

b.Exporting

c.Licensing

d.Foreign Direct Investment

7.If Pepsi and a Turkish firm established a jointly owned entity for the purpose of bottling soda in Turkey, that would be an example of a :

a.turnkey project.

b.wholly owned subsidiary.

c.joint venture.

d.franchis

e.

8.Foreign direct investment is :

A)playing an increasing role in the global economy

B)playing a decreasing role in the global economy

C)playing an increasing role in the global economy for service organizations but a decreasing role for manufacturing firms.

9.occurs when a firm invests directly in facilities to produce and / or market a product in a foreign country.

A)Reciprocal foreign investment

B)Cross- boarder international investment

C)International capital investment

D)Foreign direct investment

10.Once a firm undertakes FDI, it becomes a :

A)international conglomerate

B)multinational enterprise

C)synergistic enterprise

D)cross-cultural enterprise

11.FDI takes on two main forms. They are:

A)green-field investments and acquiring or merging with an existing firm

B)alliances and joint ventures

C)acquiring or merging with an existing firm and joint ventures

D)alliances and green-field investments

12.FDI is investment in the same industry abroad as a fim operates in at home.

A)Vertical

B)Parallel

C)Horizontal

D)Backwards

13.Vertical FDI takes two forms. These are :

A)backward vertical FDI and forward vertical FDI

B)upward vertical FDI and downward vertical FDI

C)indirect vertical FDI and direct vertical FDI

D)horizontal vertical FDI and reverse vertical FDI

14.What are a tax credit and a tax treaty? Give an example of a tax treaty. How does it work?

15.Louise Frankel heads the purchasing arm of a major Canadian equipment exporter. As she is about to close a multimillion dollar sale to an Eastern European government agency, she is told in clear terms by the purchasing agent, Dragan Simikic, that a $ 10,000 cash donation to his favorite charity, which he will personally hand-deliver, is needed to complete the sale. What should Louise do ?

16.Regal Shipping, Ltd. Is a publicly traded company incorporated in the United Kingdom, It carries freight between Europe and the United States. Two years ago, it lowered its fares to half that of its competitors. The competitors (i.e., Plebeian shipping lines, ltd. A U.K. company, and seven other shipping companies incorporated in the United States Canada, France, Germany, Italy, and Japan) were enraged by Regal's action, and they secretly agreed to lower their own prices until they could run Regal out of business- Regal suffered huge losses and is on the brink of bankruptcy. It hopes to recoup its losses and stay in business by bringing an antitrust suit in the United States against its competitors.

a.In connection with its suit in the United States, Regal asks an English court to compel

Plebeian to turn over corporate documents showing the extent of the conspiracy between

Plebeian and the other seven of Regal's competitors. Will Regal succeed? Discuss.

b.Plebeian brings an appropriate action in an English court asking the court to issue an

injunction to bar Regal from suing Plebeian in the United States. Will Plebeian succeed?

Discuss.

c.The other competitors bring a separate action in England asking the English court to enjoin

Regal from continuing with its suit in the United States. Will they succeed? Discuss.

d.Assume that Regal was successful in its suit in the United States and that the U.S. court

awarded it treble damages. Is there anything Plebeian can do to minimize the amount of

the judgment it is supposed to pay Regal? Discuss.

17.The Buena Banana Co., a U.S corporation, has several subsidiaries in Central America that purchase bananas from local producers. Buena then sells the bananas under its trademark to wholesalers in the United States. The Compariia del Platano Puro. SA (Puro), an Argentine coiporation that markets bananas throughout South America, recently set up several subsidiaries in